When average total cost is minimum,it is:
A)equal to average variable cost.
B)greater than marginal cost.
C)equal to average fixed cost.
D)equal to marginal cost.
E)less than marginal cost.

Question

Quizplus · Accepted Answer

When the average total cost is at a minimum, it means that the additional cost incurred to produce one more unit, which is the marginal cost, is equal to the average total cost. Therefore, the answer is D, as it states that the average total cost is equal to the marginal cost.

When Average Total Cost Is Minimum,it Is